This Ethereum-based gaming token is forming a bottom and sending a bullish signal

Cryptocurrency analysis firm Santiment says that the native token of a popular game project based on Ethereum is starting to show bullish signals after a multi-month downtrend.

According to Santiment, the Smooth Love Potion (SLP) may soon bottom after falling more than 97% from its all-time high (ATH). Players can earn this token by participating in the NFT Axie Infinity game.

“$0.0088! It’s almost 44x lower than ATH less than a year ago – quite difficult for SLP holders. But maybe the price bottomed somewhere near that level.”

SLP is trading at $0.012 at press time, up 10% from the new all-time low near $0.009.

SLP 4 hour price chart | Source: Trade View

The analytics firm says that despite the constant price correction, SLP ETH is broadcasting a bullish on-chain signal.

“We saw a sharp spike in SLP on-chain activity last week that deviated from the price. More and more addresses are interacting with SLP on a daily basis while the price continues to drop. Bullish Divergence”.

SLP price (green) and 24 hour active SLP addresses (purple) | Source: Santiment

In addition, Santiment also emphasized that SLP whales (companies owning more than $100,000 worth of coins) are piling up. This process will start at the end of 2021.

“What do holders holding $100,000 SLP or more do? Accumulated almost all the way since November Price falls lower but not the problem. Whales continue to expand their populations.”

SLP price (green) and percentage of holders holding 10 million coins or more (purple) | Source: Santiment

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